Business Administration
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Item Influence of human resource management practices on job commitment among health professionals in public level 5 hospitals in eastern region, kenya(Chuka University, 2024) Kathenya Loise MuthoniIn the ever-changing world, organizations experience several factors that impact commitment on the job. HRM practices are already widely accepted as one of the antecedent variables that enhance job commitment. Notwithstanding the overall consequences of HRM practices, despite the findings that suggest that best HRM practices are a source of employee commitment, which is a critical organizational goal, those practices are still a strategy not frequently used by many organizations for enhancing employee commitment. The key question of this research is: How do HRM practices relate to the job commitment of health professionals in Public Level 5 hospitals in the Eastern region of Kenya? Rewards, participation of employees, and training regarding commitment shall be precisely demarcated. This research also examines how demographic variables mediate this linkage and how these human resource management practices may interactively influence job commitment. This work argument is based on Kahn's theory of Employee Engagement and ERG's theory of motivation. A descriptive research design allowed primary data collection by administering closed-ended questionnaires among the target population of 1,047 Health professionals working in the Level 5 public hospitals in Eastern Kenya. Also, the study utilized a systematic random sample technique to lure 289 healthcare employees from the required hospitals. A pilot test with 29 employees, 10% of the sample size, was conducted at Nyeri Level 5 Hospital to establish the validity of the research instrument. Data analysis was conducted using SPSS version 28.0. Both descriptive and inferential statistical analyses were done. Reliability is ensured by the Cronbach's alpha of 0.876. In this regard, diagnostic tests for normality, multicollinearity, and heteroscedasticity were done, while both simple and multiple regression analyses were undertaken to establish the relationship among Bank-specific determinants. The T-statistic at 95% significance levels was used to test these hypotheses, and the F-test criteria were used to determine the overall significance of the proposed model. Similarly, the results indicated that rewards and recognition were significantly and positively related to the employee's participation in training and to job commitment: rewards and recognition (β0 = 3.635, p-value<0.05; β1 = 2.069, p < 0.05); employee participation: β0 = 3.282, p-value <0.05; β1 = 1.059, p < 0.05; and training: β0 = 2.624, p-value < 0.05; β1 =0.268, p < 0.05. The overall effect of the predictors on job commitment had mixed and statistically significant effects: β0 = 2.912, p-value< 0.05; β1 = -0.200, p < 0.05; β2 = 0.018, p < 0.05, and β3 = 0.336, p < 0.05. The combined effects of rewards, employee involvement, and training were statistically significant, with an R-square value of 0.940 and an adjusted R-square of 0.8836, showing that these HRM practices explain 88.36% of the variance in job commitment. Demographic factors such as age and gender moderated these relationships, although the moderation effect varied across different demographics. These findings potentially add to the theory and policy-making and HRM practices in providing insights that can help increase job commitment among health professionals in public hospitals for the eventual improvement of organizational performance and, subsequently, patient care.Item Effectiveness of strategic planning on performance of savings and credit cooperative societies in Tharaka nithi county, kenya(Chuka University, 2024) Micheni Edwin MugambiStrategic planning is a logical process of visualizing the desired future of a business and how the business will accomplish it. Many Savings and Credit Cooperative Societies (SACCOs) have engaged in strategic planning but ended up recording little or no performance improvement. Whether it is a weakness in their strategic plans or it’s in the Implementation of the strategic plans where the weakness lies, is a question best answered by empirical research. Therefore, the general objective of this study was to establish the effectiveness of strategic planning on performance of SACCOs in Tharaka Nithi County. The specific objectives of this study were; to establish the effectiveness of strategy formalization, employee participation in strategic planning and strategic planning control on performance of the SACCOs in Tharaka Nithi County. The study was anchored on the theory of competitive advantage, the synoptic model and the contingency theory. The study adopted descriptive survey research design. The study targeted 13 Chief Executive Officers of SACCOs operating within Chuka town and 52 management staff of these SACCOS. The researcher used a questionnaire as the data collection instrument. The research instrument was piloted in two SACCOs operating in the neighboring Embu County. Validity was established with the assistance of the supervisors and other experts in the faculty of Business Studies of Chuka University. Reliability of the instrument was calculated the using Pearson’s correlation coefficient and a correlation coefficient of 0.934 was obtained concluding that the instruments were reliable. Data analysis was done through multiple linear regression to establish the effectiveness of strategic planning on performance of Savings and Credit Cooperative Societies in Tharaka Nithi County, Kenya. The overall significance of the model was tested using F-statistic at 5% level of significance. The findings indicated that strategy formalization has a significant and positive effect on performance of SACCOs in Tharaka Nithi County (r=.089, p<.05). Further the study findings showed that employee participation in strategy planning has a significant and positive effect on performance of SACCOs in Tharaka Nithi County (r=.085, p<.05). Finally, the study findings indicated that strategic control has a positive and statistically significant effect on performance of SACCOs in Tharaka Nithi County (r=.218, p<.05). The study recommended that SACCO’s regulatory bodies, should make it compulsory for all the SACCOS to have a formalized strategic plan, before their approval to enable the SACCOS to reap the benefits of strategic planning, as well as guide the SACCO towards attainment of its goals, and overall prosperity. The study also recommended that management of the SACCOS need to emphasize employee and stakeholders’ participation in strategic planning of the SACCOS to enable the workers to own the plan and thus work towards achieving it. Finally, the study recommended that management of the SACCOS as well as the stakeholders need to attend seminars on the evaluation and feedback of strategic planning. The study suggested that further studies should be done on the relationship between strategic planning and organizational performance in other financial institutions like the banks, microfinance and insurance companies.Item Effect of mobile banking on financial performance of commercial banks listed at the nairobi securities exchange(Chuka University, 2024) Simiyu Abraham WanyonyiA rapid change in information technology has greatly influenced firms‟ operations, including those in the banking sector. Banks are moving away from the manual banking system to more advanced information technology-based ways of banking. Mobile phone banking is the most recent innovation in the banking industry, with majority of banks embracing this technology. The purpose of this study was to determine the effect of mobile banking on financial performance of commercial banks listed at the Nairobi Securities Exchange. The specific objectives are to determine the effect of mobile banking transactions volume, mobile banking transactions‟ cost and mobile banking loans portfolio size on financial performance of commercial banks listed at the Nairobi Securities Exchange. The study also determined the moderating effect of bank size on the relationship between mobile banking and financial performance of commercial banks listed at the Nairobi Securities Exchange. The study employed descriptive research design. Secondary data was collected using a checklist, from the audited financial statements of 11 Kenyan commercial banks listed at the Nairobi Securities Exchange over a period of five years ranging from 20172021 and whose data was available for the study. The data analysis was carried out using STATA version 16. Simple and multiple linear regression with Driscoll-Kraay standard errors were used to address cross-sectional dependence. The hypotheses of the study variables were tested using t-statistic while the overall significance of the models was tested using F-statistic at 5% level of significance. The results were presented in tables. The study found that mobile banking transactions volume positively and significantly impact the financial performance of commercial banks. This is attributed to the convenience and efficiency that mobile banking provides, leading to increased customer satisfaction and retention, which in turn boosts profitability. The study did not find any significant effect of mobile transaction costs on ROE. A negative significant relationship between mobile banking loans portfolio size and ROE was found, possibly due to credit risk from higher default rates and the costs associated with managing a larger portfolio of smaller loans. Bank size was found to positively and significantly moderate the relationship between mobile banking and financial performance. Larger banks are more likely to benefit from economies of scale. They can invest more in technology, thus reaping greater benefits from mobile banking products such as Fund Transfers, E-funds transfers, and bill payments. Finally, mobile banking and bank size had a positive significant combined effect on ROE of Commercial banks. The study recommends that commercial banks should enhance transaction volumes via mobile platforms, bolster risk management for mobile loans, engage in strategic partnerships for smaller banks, and regularly evaluate their mobile loan portfolios for effective credit risk management to optimize profitability. The findings of the study would be useful to the management of commercial banks in enabling them to analyze the extent to which mobile banking has influenced banks‟ financial performance hence leverage of this financial innovation to boost banks‟ performance. The findings of the study also contribute to the body of existing knowledge in relation to the effect of mobile banking on financial performance of commercial banks.Item Effect of non-monetary incentives on employee performance in commercial banks in Nyeri county, kenya(Chuka University, 2024) Wanjiku Charles GitauThe banking sector remains a crucial pillar of Kenya's economy, with the total assets of commercial banks steadily growing, reaching approximately Ksh 7.3 trillion in 2020, according to data from the Central Bank of Kenya. Despite this growth, employee performance in the sector has been a concern, with reports indicating a turnover rate of around 15% in recent years, as noted by the Kenya Bankers Association. The general objective of this study was to establish the effects of non-monetary incentives on employee performance in commercial banks in Nyeri County, Kenya. Specifically, the study sought to establish the effect of employee welfare, training, and Employee Autonomy on employee performance and to examine the moderating effect of work experience on the relationship between non-monetary incentives and employee performance. The study was guided by the Functional Theory of Labour Welfare, Social Learning Theory, and Self-Determination Theory. A descriptive research design was used, with the unit of analysis being employees working in commercial banks in Nyeri County, and the unit of observation being their performance. The target population was 543 respondents, with a sample size of 230 determined using the Yamane formula. Simple random sampling was employed, and data was collected through structured questionnaires. A pilot study was conducted in Murang’a County to pre-test and validate the questionnaire before the main study. Murang’a was selected for its similarity to Nyeri County in terms of socio-economic conditions, ensuring the pilot results were relevant for improving the study design. Quantitative data was analyzed using descriptive and inferential statistics with the help of SPSS version 28, with a confidence level of 95%. The study's findings showed that employee welfare (β = 1.811, p < 0.05), employee training (β = 0.441, p < 0.05), and Employee Autonomy (β = 0.822, p < 0.05) significantly improved employee performance. Work experience had a direct significant effect (β = 0.455, p < 0.05) and moderated the impact of non-monetary incentives on performance. The study concludes that non-monetary incentives play a crucial role in enhancing employee performance and recommends investing in welfare programs, continuous training, and increased Employee Autonomy while leveraging the experience of long-serving employees.Item Effect of firm level financial characteristics on corporate leverage of manufacturing firms listed at the Nairobi securities exchange(Chuka University, 2024) Mutegi Reuben MutindiManufacturing firms often use debt in financing their day to day operations. However, what constitutes optimal debt level is a subject of debate among researchers. Prior studies often associate firm specific characteristics with firm leverage. Despite efforts to employ qualitative, quantitative and triangulation approaches in conceptualization of study variables, the available evidence is however not conclusive. It is in this context that the present study set out to establish the effect of firm level financial characteristics on corporate leverage of manufacturing firms listed at the NSE. Specifically, the study tested the effect of asset tangibility, firm growth and firm liquidity on corporate leverage of manufacturing firms listed at the NSE. To provide more insight on the context of the variables, the study considered trade-off theory, pecking order theory, agency-cost theory and the simple linear regression model. This study employed causal research design and longitudinal research design in an attempt to explain the cause-effect relationship between the variables for the years 2018-2022. Secondary data from published audited financial statements of the listed manufacturing firms at the NSE for a period of five years 2018-2022 was considered. A target population of 23 manufacturing firms listed at the NSE was employed. The research data was pooled over a five-year period across the 23 firms yielding 115 observations. The data was summarized in MS-Excel and later analyzed using Statistical Package for Social Sciences (SPSS) version 28. Analysis of data included descriptive and inferential statistics. Hypotheses were tested at 5% level of significance using t-statistics and p-values. Results of the analysis showed that asset tangibility negatively affects corporate leverage since firms that generate relatively high internal funds tend to avoid debt funding ( t = -3.66, p=0.000 <0.05). This is consistent with the pecking order theory that explains that the use of retained earnings to finance firm’s operations comes with the minimum possible cost and managers would prefer to choose retained earning first before debt and equity. Firm growth had a negative effect on corporate leverage ( t = -2.285, p=0.024 < 0.05). Firm liquidity was also observed to have a significant negative effect on corporate leverage ( t = -3.356, p= 0.023< 0.05). The slope to predict corporate leverage from firm level characteristics does not differ significantly between the levels of firm age t = ˗2.301, p= -0.130 ˂0.05). Results of joint analysis showed that asset tangibility and firm liquidity have a negative effect on corporate leverage whereas firm growth does not affect corporate leverage. The interaction between firm age and firm level financial characteristics was not significant ( t =0.983, p=0.328˃0.05). This implies that the effect of firm level financial characteristics on corporate leverage does not depend on the firm age. The outcome of the study will be of value to investors, managers and shareholders in making choices aimed at maximizing shareholders’ wealth and in enhancing firm value. The study is also significant to academicians in broadening their knowledge on the nexus between firm level financial characteristics and corporate leverage of manufacturing firms.Item Effect of internal control systems on quality of financial reports of non-deposit taking SACCOS in Tharaka Nithi county, Kenya(Chuka University, 2024) Muendo Kavwele AlfredThe quality of financial reports of Savings and Credit Co-operatives (SACCOs) has been poor and declining in the past few years as evidenced by Tharaka Nithi Cooperative Audit Status Report 2022. To avoid this trend, SACCOs have focused on application of computerized systems to induce innovations and enhance the quality of reports and operations. The main objective of the study was to determine the effect of internal control systems on the quality of financial reports of non-deposit taking SACCOs in Tharaka Nithi County, Kenya. The specific objectives of the study were to determine the effect of control environment, control activities, risk assessment, information and communication and monitoring on quality of financial reports of nondeposit taking SACCOs. A census was taken of all the 35 non-deposits taking SACCOs that are incorporated and are headquartered and carry out their operations in the County. The study was anchored on agency theory, attribution theory and stewardship theory. The study used a structured questionnaire for data collection. Data was analyzed using both descriptive and inferential statistics with the help of Statistical Package for Social Sciences (SPSS) version 25.0. The hypotheses of the study were tested using t- test while the overall significance of the model was tested using F- Ratios at 5% level of significance. Multiple regression analysis was used to analyze the relationship between the variables in the study. Control environment has a regression coefficient (-0.721, P-value=0.006) implying that control environment has a negative statistically significant effect on quality of financial reports. Control activities have a positive statistically significant effect on financial report quality with a regression coefficient, which is (1.039, P-value=0.005). Risk assessment has a regression coefficient (0.703, P-value=0.035) implying that risk assessment has a positive statistically significant effect on quality of financial reports. Information and communication have a regression coefficient (0.817, P-value=0.000) implying that information and communication has a positive statistically significant effect on quality of financial reports. There was potentially insignificant moderation between internal control systems and competence of the board of directors with a regression coefficient of -0.659 and a p-value of 0.228>0.05. Findings from the study are expected to help determine the effect of internal control systems on quality of financial reports of SACCOs in Tharaka Nithi County. The study will help the SACCOs management understand the importance of having good internal controls that ensure quality financial records and report. This study will be of benefit to researchers since it will add to existing knowledge. The study recommends that firms should adopt proper control activities, develop risk identification, risk evaluation, risk response and risk program analysis strategies and ensure clear communication of information in order to improve the quality of financial reports.Item Effect of strategic innovations on the performance of savings and credit cooperative societies in Nairobi city county, Kenya(Chuka University, 2025-10) Bundi, Moses KimanthiStrategic innovation is crucial for long-term success. Savings and Credit Cooperatives (SACCOs) in Kenya are instrumental in Gross domestic product (GDP) growth and uplifting the livelihoods of the people through job creation, poverty eradication by enhancing financial inclusion. Despite having a huge potential for growth, SACCOs in Nairobi City County have witnessed a decline in performance. While most of the SACCOs in Nairobi City County have started adopting various innovations, it is apparent from the performance that they are yet to harness well on these innovation strategies to improve their performance. Strategic innovation is a strategic management tool that can influence organizational performance, enhance competitiveness, adaptability and long-term sustainability. Anchored in the strategic management perspective, this study examined the effect of strategic innovations on performance of SACCOs in Nairobi City County. The specific objectives were to examine the effect of product innovation, process innovation and marketing innovation on performance and the moderating effect of SACCO size on the relationship between strategic innovation and performance. This study was anchored on Schumpeter theory of innovation, dynamic capability theory and resource based view. Descriptive research design was adopted with a population of 177 SACCOs in Nairobi City County. The study adopted a census technique and the respondents were 177 chief executive officers or their equivalent in the SACCOs. Data was collected using a closed-ended questionnaire and a data collection sheet. Data was analyzed using descriptive and inferential statistics and with the aid of Statistical Package of Social Sciences version 28.0. Cronbach’s alpha was used to test reliability. Construct validity was tested using regression analysis. The content validity was done through research supervisors who checked if the research instrument captures all the relevant aspects to answer the research questions. The pilot study involved 18 respondents from 18 SACCOs in Kiambu County which constitute ten percent of the targeted chief executive officers. Simple and multiple regression analysis was done to establish the relationship between variables. Correlation analysis was used to test the strength of the relationship between variables. Data was presented using tables and figures. T-test and F- test was used to test hypothesis at 5% significance level. The results of the study indicate that product innovation was statistically insignificant (β=-0.051, P-value=0.541>0.05). The results of the study indicate that process innovation and marketing innovation were statistically significant (β=0.634, P-value=0.000<0.05, β=0.548, P-value=0.000<0.05) respectively. The results of the study indicate that the interaction effect between strategic innovation and SACCO size was statistically significant (β=0.279, Pvalue=0.016<0.05). Savings and Credit Cooperatives are encouraged to adopt modern technologies and efficient systems that streamline operations, reduce costs, and improve service delivery. SACCOs should strengthen marketing efforts by embracing digital platforms, targeted campaigns, and member engagement strategies to increase visibility and attract new members. SACCO managers should continuously improve internal operations by adopting technology-driven process innovations such as automated loan processing systems, mobile banking applications, and real-time data management tools. Furthermore, policy makers should develop and implement flexible guidelines that support digital transformation, such as e-banking, automated loan systems, and electronic record management, without imposing excessive compliance burdens.Item Financial literacy, investor age, behaviour and Investment decisions among Chuka university staff, Kenya(Chuka University, 2025) Juma, Ebby NakuminchaFinancial literacy remains low globally, with Kenya recording only 38% according to the World Bank. Despite this, financial knowledge is essential for making informed investment choices that support wealth creation, business growth, and economic stability. Poor investment decisions can result in financial losses and long-term insecurity. Research also indicates that the link between financial literacy and investment decisions is affected by factors such as age and investor behavior. Therefore, this study sought to examine the effect of financial literacy on investment decisions among Chuka University staff, with investor age and investor behavior examined as moderating variables. The study was guided by the Theory of Planned Behavior, the Expected Utility Theory, and the Portfolio Theory. A descriptive research design was employed, and data were collected using structured questionnaires from a sample of 154 respondents selected through proportionate stratified random sampling. A pilot study was conducted with 15 staff members from the University of Embu, representing 10% of the target population, to test the accuracy of the questionnaire. Questionnaire reliability was assessed using Cronbach’s alpha, where a coefficient above 0.7 indicated acceptable internal consistency. The validity of the instrument was confirmed through expert review to ensure that all items accurately captured the constructs under investigation. Linear regression was used to test the direct effect of financial literacy on investment decisions, stepwise regression was applied to examine the moderating effects of investor age and investor behavior, while multiple regression was employed to determine the combined effect of all variables on investment decisions. Diagnostic tests for linearity, normality, homoscedasticity, and multicollinearity confirmed that the data met the assumptions of the Ordinary Least Squares (OLS) regression. All hypotheses were tested at a 5% level of significance (α = 0.05). The results showed that staff at Chuka University exhibited high financial literacy (M = 3.75) and made optimal investment decisions (M = 3.83), reflecting prudent risk diversification and long-term financial planning. Investor behavior was found to be fairly rational (M = 3.79; 75.8%), indicating that most respondents made logical and informed financial choice. The study revealed that older staff have the ability to make better investment decisions than younger staff by 0.086 score on the baseline level. Regression results confirmed that financial literacy (β = 0.544, p < 0.001) and investor behavior (β = 0.075, p < 0.001) significantly influenced investment decisions, while age had no effect (β = 0.077, p = 0.383) on the link, highlighting knowledge and rational behavior as key drivers of effective outcomes. The study recommends that investors continuously improve their financial literacy, particularly in financial products, investment strategies, and behavioral finance. It further suggests that policymakers and financial institutions create accessible educational programs through online resources and interactive platforms. Universities and financial institutions should also include financial literacy and behavioral finance training in staff development initiatives, while the government should incorporate financial education into school curricula to strengthen overall financial awareness.Item Digital micro credit, age and gender on financial inclusion of small-scale traders in Chuka township, Tharaka Nithi county, Kenya.(Chuka University, 2025) Odira, David OtienoThe motivation for the research stemmed from the recognition that while digital microcredit is widely promoted as a tool for poverty reduction and economic empowerment, its actual impact on financial inclusion remains uncertain. This study examined the relationship among Digital Micro Credit, age and gender on the Financial Inclusion of small-scale traders in Chuka township, Tharaka Nithi County. Understanding this relationship is critical for designing financial systems that support marginalized groups and foster equitable economic participation. The study was guided by the Theory of Financial Innovation and the Technology Acceptance Theory. A descriptive cross-sectional research design was adopted, targeting a population of 2,374 small-scale traders in Chuka Township. Using stratified and simple random sampling procedures, a sample of 182 traders was determined through Cochran’s formula. Data were collected using structured questionnaires, whose content validity was confirmed through expert review, while reliability was established using Cronbach’s Alpha, yielding an overall coefficient of 0.757, which was within acceptable thresholds. A pilot test involving 18 traders was carried out in Chogoria market to refine the instrument. Both descriptive and inferential statistical techniques were employed. Descriptive results revealed that a majority (54.7%) of respondents were female, while most traders (61.3%) were aged between 26–45 years. The average duration in business was 6–10 years, indicating considerable trading experience. Most respondents (68.5%) reported frequent use of digital loan platforms such as M-Shwari and KCB-MPesa, mainly for business restocking and emergency needs. Inferential analysis using Ordinary Least Squares (OLS) regression showed that digital microcredit alone had a positive but statistically insignificant effect on financial inclusion (β = 0.112, p > 0.05), leading to the retention of the null hypothesis (H01). However, age significantly moderated this relationship (β = 0.214, p < 0.05), with middle-aged traders (36–55 years) showing higher inclusion levels than younger groups. Similarly, gender significantly moderated the relationship (β = 0.198, p < 0.05), indicating that male traders benefitted more from digital microcredit services compared to female counterparts. The combined moderating effects of age and gender were statistically significant (R² = 0.063, F = 3.98, p < 0.05), confirming that demographic factors jointly shape financial inclusion outcomes. The study concludes that expanding digital microcredit access is necessary but insufficient as a stand-alone driver of financial inclusion. Theoretically, the study contributes to the literature by showing that digital innovations alone do not automatically close inclusion gaps, as their effectiveness depends on user characteristics and contextual factors. Practically, the findings highlight the importance of tailoring financial products to demographic realities while strengthening supporting services. Future research should investigate additional determinants of financial inclusion, adopt mixed-methods approaches, and assess long-term impacts of digital microcredit across diverse settings.Item Effect of corporate board structure on the value of financial firms listed at the Nairobi securities exchange, Kenya(Chuka University, 2025-11-10) Njoka, Eva GatuneAs global best practices continue to emphasize the importance of sound governance, there is a growing need to understand how the structure of corporate boards affects the value of financial firms in the Kenyan context. This study sought to explore the relationship between board structure and firm value among financial firms listed on the NSE. The specific objectives of this study were to establish the effect of board size, board independence and board remuneration on the value of financial firms listed at NSE and to evaluate the moderating effect of firm size on the relationship between board structure and the value of financial firms listed at NSE. This study was based on Agency Theory, Stakeholders’ Theory and Stewardship Theory. A descriptive cross-sectional research design was adopted. A census technique was conducted to collect data from all the 22 listed financial firms for a 5 year period from 2020 to 2024. The study relied only on secondary data, collected from the annual financial reports of the financial firms. Data was analyzed using descriptive and inferential statistics. Microsoft Excel and SPSS version 28.0 were used to code and analyze the raw data collected. Diagnostic tests were carried out to test the regression assumption. Multiple regression analysis was used to establish the relationship between variables, and t-statistic at 5% significance level was employed to test the hypotheses. The findings of the study revealed that board size (B = 0.002, P=0.602>0.05) and board independence (B = -0.002, P=0.647>0.05) have no statistically significant effect on firm value, as their p-values are well above the 0.05 threshold. This suggested that simply increasing the number of board members or having more independent directors does not necessarily translate into higher firm value. However, board remuneration (B =0.073, P=0.000<0.05) was positive and highly significant, meaning that compensating directors adequately had a strong and positive influence on firm value. This implied that rewarding board members aligns their interests with those of shareholders, motivating them to commit more effort, skills, and oversight to enhance firm performance. The results suggest that in firms listed at the NSE, the financial incentives provided to board members are more impactful in driving firm value compared to board size or independence. This could be explained by the idea that remuneration serves as a tangible motivator, encouraging directors to act diligently in advancing firm goals, whereas board size and independence may not automatically translate into effective governance unless coupled with accountability mechanisms. The study recommended that Regulators should also avoid rigid prescriptions on board size and instead encourage firms to adopt sizes that best match their operational complexity and strategic needs. The study findings are expected to add to the academic field by laying a foundation for further research on board structure and firm’s value. The study is expected to benefit regulators and policymakers, such as the Capital Markets Authority (CMA) and the Central Bank of Kenya (CBK), by highlighting areas that require stronger governance frameworks to enhance market stability and investor confidence.Item BCOM 262: BUSINESS STATISTICS(Chuka University, 2023-04-11) Chuka UniversityItem BCOM 263: OPERATIONS RESEARCH I(Chuka University, 2023-04-11) Chuka UniversityItem WORKING CAPITAL CYCLE AND FINANCIAL PERFORMANCE OF MANUFACTURING FIRMS LISTED ON THE NAIROBI SECURITIES EXCHANGE, KENYA(Chuka University, 2023-10) KIMUTAI RUTH JEPKOSGEIManufacturing firms in Kenya have been a vital contributor to industrial growth and the achievement of Kenya's 2030 objective. Although the sector has made significant investment in working capital items like cash, inventories, account receivable and account payable. The goal of this research was to find out how the working capital cycle (WCC) affected the financial performance of manufacturing companies listed on the Nairobi Stock Exchange (NSE). The study's specific objectives were to examine the impact of inventory conversion period, debtors collecting period and creditor deferral period on manufacturing firms listed on the Nairobi Securities Exchange and the role of firm size in this relationship. Economic order quantity, transaction cost and the cash conversion cycle theories were the hypotheses that led this research. The study employed a descriptive cross-sectional design. The study conducted a census of the whole population of nine NSE-listed manufacturing firms from 2013 through 2022. A checklist was used to collect secondary data from corporate financial records and NSE manuals. The T-test was used to test hypotheses, and the F test was used to assess model significance at a level of 5%. With a regression coefficient of 0.117 and a p-value of 0.016<0.05, the study discovered that inventory conversion period had a substantial beneficial influence on financial performance. Furthermore, with a regression, debtors collecting period showed a negative non-significant effect on financial performance, with a regression coefficient of -0.035 and a p-value of 0.214>0.05. Furthermore, the creditors deferral period had a negative significant influence on financial performance, with a regression coefficient of -0.069 and a p-value of 0.000<0.05. Finally, the relationship between the working capital cycle and financial performance was significantly moderated by firm size. The model coefficient for the interaction effect of working capital cycle and business size was -0.031, with a p-value of 0.046<0.05. According to the study, managers should shorten creditors' deferral period days in order to improve firm performance. Managers should also cut the time it takes to process raw materials.Item SECOND YEAR EXAMINATION FOR THE AWARD OF DEGREE OF BACHELOR OF COMMERCE AND BACHELOR OF ENTREPRENEURSHIP AND ENTERPRISE MANAGEMENT(Chuka University, 2023-04-11) Chuka universityItem EFFECT OF FINANCIAL RISK ON SHAREHOLDERS' WEALTH OF COMMERCIAL BANKS LISTED AT NAIROBI SECURITIES EXCHANGE, KENYA(Chuka University, 2021-11) MOGUSU MARGARET WANJIRUShareholders' wealth is among critical decisions in a firm because it has a bearing on overall investor perception and firm value. There has been concern about the declining value of shareholders' wealth among commercial banks listed at the Nairobi Security Exchange (NSE). Previous studies have linked financial risk to shareholders' wealth. The researchers, however, disagree on the magnitude and direction of the effect. The main objective of the research was to determine the effect of financial risk on shareholders' wealth of commercial banks listed at Nairobi Securities Exchange. The study's specific objectives were to establish the effect of credit risk, liquidity risk, foreign exchange risk, and interest risk on shareholders' wealth. Commercial banks were chosen since they are required by Capital Market Authority to disclose all their financial statements to the public. This study was anchored on Modigliani and Miller Theory, Capital Asset Pricing Model, Financial Distress Theory, and Modern Portfolio Theory. A descriptive research design was adopted. The target population of this study was eleven commercial banks that had been constantly listed at the Nairobi Securities Exchange from 2013 to 2019. A census was conducted to collect data from the eleven banks due to the small size of the population. Data was obtained from published financial statements of all the eleven commercial banks listed at the NSE and the Banking survey publications for seven years from 2013 to 2019. These banks were consistently listed for this period. A checklist was used to guide in collecting secondary data. Data was analyzed using descriptive and inferential statistics with the help of Microsoft Excel and SPSS version 25.0. Multiple regression analysis was used to establish the relationship between variables, and t-statistic at a 5% significance level was employed to test the hypothesis. The overall significance was tested using the F-test. The findings of the study were presented in the form of tables and equations. The study established that credit risk had a significant adverse effect on shareholders' wealth with a regression coefficient of -215.945 and a p-value of 0.039. Further, it was found that liquidity risk and foreign exchange risk had a negative and positive effect with a regression coefficient of -0.556 and 3.764 and p-values of 0.023 and 0.035, respectively. The interaction between operational efficiency and financial risk had a regression coefficient of -17.772 and a p-value of 0.003. The study concluded that credit risk, liquidity risk, and foreign exchange risk had a significant effect on shareholders wealth of Commercial banks listed at the NSE and recommended that Managers should come up with stringent policies of regulating loans, and they can also demand collateral before issuing loans to curb credit risk. Banks should come up with a strategy of holding more liquid assets than liabilities. Banks should come up with ways of diversifying their resources to minimize risk and maximize returns. Commercial banks should emphasize refining their operational efficiency to reduce financial risk and mprove shareholders' wealth. Operational efficiency was found to alter the relationship between financial risk and shareholders' wealth. This studywill be significant to the Central Bank of Kenya and the government while formulating banking policies and regulations and guiding banks in developing their specific policies of minimizing financial risk. It will also provide further knowledge in the field of Commercial banks' financial risks.Item SECOND YEAR EXAMINATION FOR THE AWARD OF DEGREE OF BACHELOR OF COMMERCE AND BACHELOR OF ENTREPRENEURSHIP AND ENTERPRISE MANAGEMENT(Chuka University, 2023-04-11) Chuka universityItem BCOM 213: INTERMEDIATE ACCOUNTING II(Chuka University, 2023-04-11) Chuka universityItem EFFECT OF PERSONAL ATTRIBUTES ON ENTREPRENEURIAL INTENTIONS AMONG STUDENTS UNDERTAKING ENTREPRENEURIAL COURSES IN UNIVERSITIES IN MERU AND THARAKA NITHI COUNTIES.(Chuka University, 2023-10) GIKUNDA KELVIN KIMATHIThe idea of entrepreneurship is gaining popularity throughout the world, especially in undeveloped countries where a variety of problems impede economic development. In order to handle economic issues like unemployment, wealth creation, societal stabilization, improved industry competition and economic growth entrepreneurship is crucial. The major goal of this study was to determine the relationship between personal attributes and entrepreneurial intention among university students in the counties of Meru and Tharaka Nithi. Determining the relationship among locus of control, need for achievement and risk-taking propensity and moderating relationship between operating environment and entrepreneurial intentions among university students were the specific objectives of this study. The study was conducted among university students since the students had undertaken entrepreneurial training to become future entrepreneurs. The study adopted descriptive research design. The study's target population was 800 students and a sample size of 267 respondents who were in third and fourth years and had undertaken entrepreneurial studies as a courses at the universities. This study was anchored on theory of planned behavior which states that an individual perceptions of a behavior and their subjective standards determines ones’ behavioral intentions and entrepreneurship event model of entrepreneurship which states that persons’ decisions is influenced by three factors that is; perceived desirability of the suggested behavior, propensity to act and practicability of the behavior. A questionnaire was used to guide in collecting primary data. Data obtained from this study was analyzed using descriptive statistical methods including tables, mean and standard deviation. Data was further analyzed using inferential statistics and SPSS version (25.0) as a tool. Multiple regression analysis was used to establish the link between variables using confidence level of 95%. The research discovered an important link between entrepreneurial intentions and locus of control (regression coefficient =0.281, p-value 0.000). Entrepreneurial intentions were revealed to be definitely and favorably affected by the need for achievement (regression coefficient =0.418, p-value of 0.000). Additionally, risk taking propensity had a favorable significant relationship with entrepreneurial intentions (regression coefficient=0.187, p-value 0.000). Therefore, each of the three elements affected entrepreneurial intentions. The study recommends that universities should encourage students to believe in their abilities to make their future bright. Therefore, firms should invest in frameworks for locus of control, need for achievement and should be innovative regardless of the risks. Further research should be conducted in different contexts and other studies should be carried out for a longer period of time to track the changes over a period of time.Item PERFORMANCE OF STARTER BROILER CHICKENS FED ON A BLEND OF PHYTOBIOTICS AS IN-FEED ANTIBIOTIC REPLACERS(Chuka University, 2022-09) MAINA, JULIUSThe performance of starter Cobb 500 broiler chickens fed on stinging nettle leaf meal (NLM) or whole coriander seed meal (CSM) as feed additives singly and as a blend was investigated. The National Research Council (NRC) (1994) guidelines were followed in formulating the experimental diets. Each of the experiment lasted for 17 days. In experiment one, seven diets were prepared as follows: Control (0%), NLM at 1%, 1.5% and 2% and CSM at 0.5%, 1% and 1.5% dietary inclusion levels. A total of 84 unsexed chicks were weighed and randomly allocated the experimental diets with 4 replicates of 3 chicks each. The aim of the experiment was to get the level with highest Growth rate (GR) for each of the phytobiotic. For experiment two, three diets were utilised; basal diet supplemented with a blend of NLM at 1.5% and CSM at 0.5% inclusion levels (Blend), basal diet supplemented with oxytetracycline hydrochloride powder at the rate of 0.05g/kg of feed (Cox; the positive control) and the Control diet (negative control). A total of 36 unsexed chicks were weighed and randomly allocated to the experimental diets with 4 replicates of 3 chicks each. For both experiments, feed intake (FI) and body weight (BW) were weighed and recorded daily and weekly respectively. Feed conversion efficiency (FCE) and GR were also calculated. For experiment two, ileal nutrient digestibility (IND) and the populations of dominant ileal bacteria (DIB) were determined. Both experiments were laid out in a completely randomized design (CRD) with data being analysed using statistical analysis system (SAS version 9.4) software. Tukey pairwise comparisons were conducted to compare variations among diets where analysis of variance (ANOVA) showed differences at probability values (α = 0.05). Results from experiment one showed that the birds supplemented with NLM at 1% and CSM at 0.5% showed significant mean FI of 162.03g and 193g respectively. Significantly higher GR was recorded for all the dietary treatments; both for NLM and CSM supplemented groups (p<0.05) with the highest GR being 113.56g for NLM at 1.5% and 119.31g for CSM at 0.5%. Birds supplemented with NLM at 2% showed the highest FCE of 7.98 amongst the NLM group and CSM at 1.5% (8.35) for the CSM supplemented group. From the study, supplementing the diets of starter broiler chickens with NLM at 1.5% and CSM at 0.5% resulted to the highest GR. Results from experiment two showed that FI, GR and FCE were significantly (p<0.05) affected by the dietary treatments. The group of birds supplemented with Blend showed higher FI (133.08g), GR (117.10g) and FCE (5.35) as compared to the other dietary treatments. The IND of dry matter (DM) (85.21%), crude protein (CP) (89.86%) and crude fibre (CF) (67.65%) was significantly higher in the groups of birds fed on Blend. For the birds fed on Cox and control diets, the IND of DM and CF was numerically different but non-significant at p<0.05. The CP digestibility was significant for all the diets offered to the experimental animals at p<0.05. Additionally, all diets had a significant effect on the proliferation of ileal bacteria studied at p<0.05. The growth of Escherichia coli (E. coli) was significantly increased by the Control diet (4.56 cfu/ml), with Cox showing the least effect (3.13 cfu/ml). The populations of Clostridium perfringens (C. perfringens) were significantly increased with feeding Control diet (4.69 cfu/ml) but were decreased by Cox diet (2.09 cfu/ml). The Blend had the most significant effect on the growth of Lactobacillus species (spp.) (7.82 cfu/ml), with the Cox diet having the least effect (2.67 cfu/ml). From the study, dietary inclusion of a blend of NLM at 1.5% and CSM at 0.5% can be used as alterative to infeed oxytetracycline in growing of starter broiler chickens in Kenya.Item APPLICATION OF ASYMMETRIC-GARCH TYPE MODELS TO THE KENYAN EXCHANGE RATE AND BALANCE OF PAYMENTS OF TIME SERIES DATA(Chuka University, 2022-09) NDEGE, ERICThe critical concern of financial market investors is uncertainty of the returns. The symmetric-GARCH type models can capture volatility and leptokurtosis. However, they do not capture leverage effects, volatility clustering, and the thick tail nature of financial time series. The primary objective of this study was to apply the asymmetric-GARCH type models to Kenyan exchange and balance of payments of time series data to overcome the shortcomings of symmetric-GARCH type models. Secondary objectives included fitting asymmetric-GARCH type models to the Kenyan exchange rate and Balance of payments data, identifying the best asymmetric-GARCH type model(s) that best fit(s) the Kenyan exchange rate and Balance of payments data and forecasting the Kenyan exchange rate and Balance of payments data trends using the best asymmetric-GARCH type model. The study compared five asymmetric Conditional Heteroskedasticity class of models: IGARCH, TGARCH, APARCH, GJR-GARCH, and EGARCH. Monthly secondary data on the exchange rate from January 1993 to June 2021 and Balance of payments from August 1998 to June 2021 were obtained from the Central Bank of Kenya website. Asymmetric GARCH models were fitted to the stationary log-differenced data based on the functions in the RUGARCH package in R. The best fit model is determined based on minimum value of Akaike Information Criterion (AIC), Bayesian Information Criterion (BIC). The optimal variance equation for the exchange rates data was APARCH (1,1) - ARMA (3,0) model with a skewed normal distribution (AIC = -4.6871, BIC = -4.5860) since it accounts for leverage and the Taylor effect. The optimal variance equation for the Balance of payment data was ARMA (1,1) - IGARCH (1,1) model with a skewed normal distribution (AIC = -0.14475, BIC = -0.07882) due to absence of (persistent) volatility clustering in the series. Volatility clustering was present in exchange rate data. Both series did not show evidence of leverage effect. Estimated Kenya’s exchange rate volatility narrows over time, indicating sustained exchange rate stability. While the balance of payment volatility has narrowed over time, the balance of payment deficit keeps widening. Thus, the government should take measures to ensure that it maintains it competitiveness in the global market to attract foreign direct investment and promote exports of goods and services.